Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Marketable Securities and Fair Value Measurements

Marketable Securities

As of December 31, 2018 and 2017, all of the Company’s marketable securities were classified as available-for-sale and their estimated fair values were $120.8 million and $82.6 million, respectively. The Company periodically reviews its available-for-sale securities for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period, and its intent to sell. As of December 31, 2018 and 2017, the Company’s available-for-sale securities primarily consisted of corporate bonds and other government obligations that are priced at fair value. During the years ended December 31, 2018, 2017, and 2016, the Company did not recognize any other-than-temporary impairment loss. The maturities of the Company’s long-term marketable securities generally range from one to two years. The cost basis of a marketable security sold is determined by the Company using the specific identification method. During the years ended December 31, 2018, 2017, and 2016, the Company did not have any realized gains or losses.

The following tables present details of the Company’s marketable securities as of December 31, 2018 and 2017 (in thousands):



	December 31, 2018
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Short-term:
Investment securities	$	114,402	$	(124	)	$	114,278
Long-term:
Investment securities	6,603		(77		)	6,526
Total	$	121,005	$	(201	)	$	120,804



	December 31, 2017
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Short-term:
Investment securities	$	61,129	$	(97	)	$	61,032
Long-term:
Investment securities	21,695		(134		)	21,561
Total	$	82,824	$	(231	)	$	82,593

Fair Value Measurements

The following tables set forth the fair value of the Company's financial assets measured at fair value on a recurring basis as of December 31, 2018 and 2017 based on the three-tier value hierarchy described in Note 2, Summary of Significant Accounting Policies (in thousands):



	December 31, 2018
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds and other funds	$	715,086	$	—	$	—	$	715,086
Short-term investments:
Investment securities	—		114,278		—		114,278
Other non-current assets:
Certificate of deposit	5,000		—		—		5,000
Long-term:
Investment securities	—		6,526		—		6,526
Total	$	720,086	$	120,804	$	—	$	840,890



	December 31, 2017
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	488,029	$	—	$	—	$	488,029
Short-term investments:
Investment securities	—		61,032		—		61,032
Other non-current assets
Certificate of deposit	5,000		—		—		5,000
Long-term:
Investment securities	—		21,561		—		21,561
Total	$	493,029	$	82,593	$	—	$	575,622

- Definition

Disclosure of marketable securities and the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details